Payroll giving is the most tax efficient way to give a gift straight from your salary.
What is Payroll Giving?
Payroll Giving is a simple, tax effective way to gift to charity from your pay.
Surveys show that each month around two thirds of us give to charity.
Giving regularly in this way is an excellent way to help the Bubble Foundation and
enables us to provide more support to our sick babies and children.
Providing that your employer offers Payroll Giving it couldn’t be simpler.
You authorise your employer to deduct regular charitable donations from your pay.
Your employer then pays these donations to a Payroll Giving agency approved by the Inland Revenue.
The agency then distributes the money to the Bubble Foundation.
What are the benefits of Payroll Giving?
The agreed deductions your employer makes from your pay are done before you pay tax, which means that you get tax relief included in your donation at your top rate of tax. It’s simple to arrange.
For example, if you pay tax at the basic rate it will only cost you £3.90 to donate £5.50 to the Bubble Foundation.
What are the benefits to the Bubble Foundation?
The main benefit of Payroll Giving is to create a regular flow of funds for the benefit of the Bubble Foundation – enabling us to plan more effectively our financial commitments for the future. The Bubble Foundation receives your donation as if you had paid tax on it, enabling the charity to receive a higher donation. The result of all this means that your original £5 donation will now be worth £5.50.
How can I find out if my employer offers Payroll Giving?
Ask your employer’s payroll department. If they do not offer a scheme, suggest that they start one – it’s easy and inexpensive to run.
How do I know if I am eligible to join the scheme?
You will be eligible provided that you are an employee or pensioner and that your employer deducts Pay As You Earn tax from your pay or pension.
How do I know that the Bubble Foundation has received my donation?
Your donation will be very important us and we will write to you to thank you. Otherwise, if you want to check that your donation has been received, you can ask the Payroll Giving agency for confirmation. The Inland Revenue check, periodically, that Payroll Giving agencies are operating the scheme correctly.
Do I have to tell my employer which charity I wish to support?
No. The Payroll Giving agency will provide you with a charity nomination form, which you can complete and return directly to the agency. Alternatively, the agency might provide you with a charity card or charity cheque book so that you can give directly to the charities of your choice. The Payroll Giving agency will keep your choice of Bubble Foundation confidential from your employer if you wish.
Can I change the charities I wish to support?
Yes, at any time. Simply tell the Payroll Giving agency. But remember – charities benefit most from regular donations. So try not to change your choice of charity too often.
Will I get unwanted mail from the Bubble Foundation asking for money?
The Bubble Foundation will want to write to thank you for your donations and tell you how they are being used. The information you provide is protected under the Data Protection Act and can be used only for the purpose for which it was given. You can ask for your name and address to be withheld from us if you wish.
How much should I give?
This is also a very personal decision. There are no limits on how little or how much you can give. You should work out how much you can afford to give every week or month.
Can I change the amount I give?
Yes, although to keep administration costs down your employer may limit the number of times you can change the amount of your donation to once or twice a year.
Can I stop giving?
Yes, at any time. Simply tell your employer’s payroll department.
Can my donations be refunded?
Unfortunately not. Once a donation has been deducted from your pay it must go to the Bubble Foundation.
Will administration charges be deducted from my donations?
Most Payroll Giving agencies make a small charge, which they deduct from your donations before distributing them to charity. The charge is normally no more than 4% of the donation, or 25p per donation, whichever is the greater. Some employers pay the agency’s charges so that the full amount of your donations can go to charity.
Will this affect other donations I make to charity?
No. You can continue to make other donations without affecting the amounts you give through Payroll Giving. If you want to know about other tax relief for giving to charity ask your local tax office for leaflet IR65 ‘Giving to Charity by Individuals’.
I’m interested, what should I do now?
Talk to your employer and find out if they already operate Payroll Giving. For more information, contact us.
Thank you for your support